New Hearst Division Is Dedicated to Global Digital Media Sales
New division Totally Global Media (TGM) will give brands a way to advertise across all Hearst Magazines’ digital brands worldwide, as well as licensees and related companies (such as Groupe Marie Claire, which already partners with Hearst on French Cosmopolitan but will now offer access to its entire women’s and men’s digital networks through TGM). TGM, with offices in New York and London, will reach 200M monthly unique visitors. “Before now, if an advertiser wanted to buy across every edition of Cosmo, there was no way to do it,” said Gina Garrubbo, SVP, Hearst Magazines International and now SVP of TGM. “There is a need [for this type of service] in the marketplace and a number of clients who want to buy multi-country from one source.” With TGM, the advertiser pays a single production fee that includes all production, translating, and hosting across multiple international Web sites. TGM offers standard IAB-sized ad units as well as custom “mini marketing programs” that can be placed within banner ads—like a fashion designer “lookbook” that includes a live Instagram feed and link to the designer’s e-commerce site and store locations, all inside a banner ad.
More Speculation Re New Time Inc. CEO; VF Editor’s Contract
NY Post’s Keith Kelly says roster of those currently rumored to be possible candidates for Time Inc. CEO job includes CFO Howard Averill; Todd Larson (EVP, president of the News & Sports Group); and David Geithner (EVP, president of the Style & Entertainment Group); plus Michael Klingensmith (a former Time Inc. EVP who’s now publisher of the Minneapolis Star-Tribune); Richard Bressler (a former Time Warner CFO now with Thomas H. Lee & Partners); and American Media Inc. chief exec David Pecker. Also reports that a source says that Vanity Fair editor Graydon Carter, through his entertainment lawyer, was pushing to get a signing bonus as well as a compensation boost in his contract renewal negotiations with Conde Nast. Meanwhile, in coverage of the NY Post’s own changes, Capital New York reports that the list of NY Post editorial staff recently offered buyouts includes about 10 of the highest-paid, veteran reporters and editors. Two said to have accepted the offers thus far.
Zinio Moves to Netflix Model
Digital magazines pioneer Zinio, in response to growing consumer preference for flexible digital sub plans, has launched Z-Pass (now live in the U.S., available in other countries later this summer). For $5 per month, subscribers get choice of three magazines from a catalog of 300+. They can swap titles in and out as they choose and add more to the plan for $1.50 each, although some premium magazines, like the The Economist, cost more. That’s cheaper than Next Issue Media’s $10 and $15 per-month sub packages (the $15 one includes unlimited access to all NIM titles, but its library includes only 82 titles).
Elle Among Those Now Offering Google Glass Apps
CNET: Though availability and pricing info for Google’s Internet-connected eyewear Glass won’t be revealed until year-end, a growing number of apps or “Glassware” for the devices are already launching. They include ones for Hearst’s Elle, NY Times, CNN news, Facebook, Tumblr, Twitter, others. While the apps have limited functionality compared with their mobile and Web versions, many companies noted the first release is only the start of what their Glass apps will soon offer. PW explains what Glass can and cannot do (you can’t read books on it, at least for now.) In related news, members of Congress’s “privacy caucus” sent a letter asking Google how it would “prevent Google Glass from unintentionally collecting data about the user/non-user without consent,” including through the use of facial-recognition technology.
WSJ (privacy concerns)
Paul Caine Hires Conde Nast Exec
Caine, who recently left his post as Time Inc. chief revenue officer to become CEO of audio content syndicator Dial Global, has recruited Christina Albee as his chief marketing officer. Albee, who has been GM of Conde Nast Media Group and helped run its digital ad unit The Studio, previously worked with Caine for 15 years at Time Inc.
Bloomberg Terminal Snooping: Customers, Regulators Up Scrutiny
Bloomberg LP is facing more questions from banks and regulators who want detailed information on its breach of customers’ data. JPMorgan is asking for data going back to 2008 and wants logs of all Bloomberg staff and a description of their roles and what they were checking. The bank is examining whether Bloomberg breached their contract; also wants assurance that inappropriate access by reporters has stopped and more info on the practices put in place to prevent a recurrence. Bart Chilton, a commissioner on the Commodities Futures Trading Commission, said that his agency might be able to regulate the relationship between Bloomberg’s data business and the news operation. Citigroup reportedly has moved two internal chat rooms used by foreign exchange traders on their Bloomberg terminals to the bank’s own proprietary system. And the Federal Reserve and Treasury Dept. said they’re looking into the situation. Separately, HuffPo reports that experts say that the Bloomberg controversy highlights the uncertainty and changing ethical landscape facing companies that, like Bloomberg, are reinventing the news business.
USA Today (questions)
Huffington Post (news media ethics)
Survey: 52% of Young People Prefer to Read on Screens
Survey of 35,000 8- to 16-year-olds by U.K.’s National Literary Trust found 52% saying they prefer to read on screens vs. 32% saying they prefer print; rest had no preference or opinion. 39% read every day on computers and screens, compared with 28% who read each day using printed materials. About a third were reading fiction on screen, with higher levels for those using tablets or e-readers. 23% read some fiction on their smartphones, but 53% still read novels in printed form. Girls more likely to read printed books than the boys, with both having similar levels of reading on screen. Younger children who read printed books as well as use computers more likely to have higher reading levels than those who only read on screen, although this gap did not apply to children who used tablets or e-readers. National Literacy Trust said: “Our research confirms that technology is playing a central role in young people’s literacy development and reading choice. While we welcome the positive impact which technology has on bringing further reading opportunities to young people, it’s crucial that reading in print is not cast aside.”
Rob Prichard Named Chairman of Penguin Canada
Prichard will oversee the Penguin Canada board of directors. He had been chair of the law firm Torys LLP and, before that, president/CEO of Metrolinx. He also served as president/CEO of Canadian media company Torstar, parent of Harlequin, and served on the board of McClelland & Stewart.
Goldstein Joins Simon & Schuster
Cary Goldstein, who was relieved of his job as publisher of Twelve in April, is joining his old boss, Jon Karp, at Simon & Schuster. Goldstein has been named v-p, executive director of publicity and senior editor at the flagship imprint, and will start at the publisher on June 3. In his new role Goldstein will be overseeing the publicity department and, S&S said, acquiring “a select number” of titles. Tracy Guest, publicity director since 1998, is leaving S&S.
Yahoo in Talks to Acquire Tumblr; Adds Twitter Posts to News Feeds
Yahoo reportedly in “serious” talks to acquire social blogging site Tumblr, in a deal that could reach $1B. Deal could add momentum for Yahoo (viewed by advertisers as “big but stale”); Tumblr has positioned itself as well-suited for brand advertising, and (unlike Yahoo) is known as the domain of the “young, cool crowd.” In other news, Yahoo plans to start diplaying posts from Twitter’s microblogging service alongside other items featured in Yahoo news feeds.
Adweek (Tumblr talks)
Bloomberg (Twitter posts)
OTHER NEWS OF NOTE:
Brooklyn’s Community Bookstore Expanding Again
Facebook Fatigue Stirring Investor Concerns (reg. req.)
Wegmans Delays Next Mass. Opening
Store in Newton, Mass. delayed from this fall to spring 2014. Wegmans, which opened its first Massachusetts store (in Northborough) in late 2011, said the delay is due to construction delays and the juggling of other projects (including its new corporate HQ, to have its grand opening on Sunday). Wegmans also looking to open a store in Burlington, Mass. in summer 2014, and is scouting for locations in Boston’s Fenway Park neighborhood.
PriceRite to Open in Danbury, Conn.
Wakefern Food Corp. cooperative announced newest PriceRite to open May 22. Located on Danbury’s Main St., on site of a former Waldbaums, it will be PriceRite’s 11th Connecticut location. The 45,000-sq.-ft. store will feature green technologies, including glass doors on dairy cases and energy-efficient lighting and refrigeration throughout the store. The PriceRite format includes fresh produce; packaged meats; baked goods; a variety of private label and national grocery brands; and dairy and frozen food products. PriceRite does not advertise or publish a weekly circular. Customers are encouraged to use their own bags or buy them as needed for 10 cents each.
BJ’s to Source Produce Via FoodLink
BJ’s Wholesale Club, Inc. is leveraging fresh food commerce and traceability solutions provider FoodLink’s buying platform to assist in the sourcing and purchasing of fresh produce across its 15-state chain. “FoodLink will help us improve supply chain visibility into market data and enable us to work closely with our suppliers to better meet the needs of our members,” said Jeff Desroches, SVP, director of logistics, BJ’s.
YouTube Launches Shoppable Videos for Brand Channels
Google is moving into shopping through YouTube’s new “channel gadget.” ”To shorten the path to purchase and translate video views to sales, today we’re introducing a new channel gadget on YouTube that will enable consumer goods brands to connect consumers directly with retailers throughout the entire YouTube experience,” Google wrote in a blog post. ”This new channel gadget will enable shoppers to seamlessly move from browsing how-to videos and featured products to finding which retailers carry them, check availability, compare prices and make a purchase, all with fewer clicks than today.” Google’s first client is Unilever’s Tresemmé, which already has a robust YouTube channel in place featuring celebrities and style setters. Now users can click on the products in demo videos for purchase information, a perk that will only appear on brand channel pages. Google isn’t the first one to take advantage of shoppable video technology. Target launched its “Falling for You” interactive shoppable video series on its Web site last year.
Kroger Takes Opportunistic Approach to Store M&A
Chuck Cerankosky, an analyst at Cleveland-based Northcoast Research who follows Kroger, says the retailer has been very opportunistic in buying select stores sites that fit in with its existing store footprint. Asked which markets Kroger will target for expansion, Cerankosky said Kroger will go “wherever the opportunities present themselves.” Kroger has been highly successful doing this kind of deal in the past, he added. “Such in-market acquisitions are almost always well below replacement cost and generate above-average, in our opinion, (returns on investment) for Kroger,” Cerankosky said. “Because it is gaining market share against weak competitors throughout its marketing areas, we think there are many opportunities for this to occur. It is a low-risk way to add stores at Kroger.”
Whole Foods, Smithfield Respond to Organic Meat Trends
Whole Foods Markets, in celebration of Animal Welfare Week, is launching a program that will help consumers connect the flavor of meat products with the way they are raised. And Smithfield, the world’s leading producer of pork, is reportedly moving to eliminate ractopamine, a controversial chemical from up to 50% of its hogs. According to research fielded this year by the Organic Trade Association, 81% of households now say they buy organic foods at least sometimes, and do so in an average of 10 categories. 41% of those families are classified as “new organic buyers.” Among all organic buyers, 88% have purchased an organic meat product in the last six months.
OTHER NEWS OF NOTE: